Economy

Ban cash transactions above ₹3 lakh: SIT

Our Bureau New Delhi | Updated on January 17, 2018

black money

Panel on black money also wants cash holdings capped at ₹15 lakh

The Supreme Court-appointed Special Investigation Team (SIT) on black money has called for a complete ban on cash transactions above ₹3 lakh as well as setting a ₹15-lakh cap on cash holdings by individuals.

The measures are expected to help prevent holding of unaccounted wealth in cash.

It further said the government should frame a new law to make transactions above this threshold illegal if the amount is not paid by cheque, bank draft, or electronic clearing system through a bank account

According to a release from the Finance Ministry, the SIT felt that as large amounts of unaccounted wealth is stored and used in the form of cash, it wants to set an upper limit for cash transactions.

The panel, headed by Justice MB Shah (retired), in its fifth report submitted before the Supreme Court, said: “Limits on cash transactions would discourage white-collared criminals or hardened criminals from money laundering and dealing in unaccounted and black money.”

In case any person or industry requires to hold cash in excess of the ₹15 lakh limit, the panel said, permission must be taken from the local Commissioner of Income tax.

Taking note of the recent disclosures by the Panama Papers, it suggested that before investing any amount or purchasing any property outside the country, the assessee must inform the jurisdictional Commissioner of Income Tax concerned.

Published on July 14, 2016

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